Global Electronic Design Automation (EDA) Market Outlook 2025-2034: Trends, Innovations, And Future Outlook

The Electronic Design Automation (EDA) Market Report by The Business Research Company delivers a detailed market assessment, covering size projections from 2025 to 2034. This report explores crucial market trends, major drivers and market segmentation by [key segment categories].

What Is the Electronic Design Automation (EDA) Market Size and Projected Growth Rate?
The market size for electronic design automation (EDA) has seen a brisk expansion in the past few years. The expectation is an increase from $15.12 billion in 2024 to $16.65 billion in 2025, reflecting a compound annual growth rate (CAGR) of 10.1%. The historical growth is credited to the escalating need for EDA tools in the automotive sector, increasing adoption of finfet architecture, heightened penetration of IoT, VR, and AI, burgeoning demand for compact and portable electronic devices, and a rising need for machine learning for EDA.

The market size of electronic design automation (EDA) is predicted to undergo significant expansion in the coming years, with projections estimating a value of $22.73 billion by 2029, growing at a compound annual growth rate (CAGR) of 8.1%. The expected growth during this forecast period is largely due to factors like rising demand for complex integrated circuits (ICS), pervasive miniaturization in numerous sectors, increasing consumer interest in fitness, the expansion of the internet of things (IoT) and connected devices, and a surge in the use of field-programmable gate arrays (FGGAS) in data centers. Key trends anticipated during this period are technological advancements, the implementation of 5G technology, increased usage of IoT devices, adoption of soc technology, and the integration of machine learning capabilities with artificial intelligence.

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What Are the Major Segments in the Electronic Design Automation (EDA) Market?
The electronic design automation (EDA) market covered in this report is segmented -

1) By Type: Computer Aided Engineering (CAE), Semiconductor Intellectual Property (SIP), Integrated Circuit (IC) Physical Design And Verification, Printed Circuit Board (PCB) And Multi-Chip Module (MCM)
2) By Deployment Mode: Cloud-Based, On-Premises
3) By Application: Microprocessors And Microcontrollers, Memory Management Units, Other Applications
4) By End User: Automotive Industry, Healthcare Industry, Aerospace And Defense Industry, Telecom And Data Centre Industry, Consumer Electronics Industry, Industrial Sector, Other End-Users

Subsegments:
1) By Computer Aided Engineering (CAE): Simulation Software, Analysis Tools, Testing And Validation Tools
2) By Semiconductor Intellectual Property (SIP): Soft IP, Hard IP, Mixed-Signal IP
3) By Integrated Circuit (IC) Physical Design And Verification: Layout Design Tools, Place And Route Tools, Design Rule Checking (DRC) Tools, Layout Versus Schematic (LVS) Tools
4) By Printed Circuit Board (PCB) And Multi-Chip Module (MCM): PCB Design Tools, MCM Design Tools, Design For Manufacturing (DFM) Tools, Schematic Capture Tools

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What Are The Driving Electronic Design Automation (EDA) Market Evolution?
The escalating need for complex integrated circuits (ICs) is anticipated to stimulate the electronic design automation (EDA) market's expansion in the future. These complex ICs, comprised of interconnected elements including resistors, transistors, and capacitors, are designed on a singular semiconductor material like silicon. Enhancing the development of intricate integrated circuits and ensuring their functionality, performance, and producibility meet targeted specifications is made easier through EDA tools. They have the capability to compile, analyze, and simulate these HDL descriptions to certify the design is accurate and fits the necessary specifications. For example, the US-based trade association and lobbying organization, the Semiconductor Industry Association (SIA), reported that in October 2024, worldwide semiconductor sales hit $53.1 billion in August 2024. Comparatively, this is a 20.6% increase from the $44.0 billion documented in August 2023 and a 3.5% increase from July 2024's $51.3 billion. Consequently, the rising demand for complex integrated circuits (ICs) is fuelling the growth of the electronic design automation market.

Which Firms Dominate The Electronic Design Automation (EDA) Market Segments?
Major companies operating in the electronic design automation (EDA) market are Siemens AG, Oracle Corporation, SAP SE, Advanced Micro Devices Inc., Dassault Systemes, Keysight Technologies Inc., Synopsys Inc., Autodesk Inc., Cadence Design Systems Inc., Werner Enterprises, Xilinx Inc., Ansys Inc., National Instruments Corp., MathWorks Inc., eInfochips Private Limited, Mentor Graphics Corporation, Altium Limited, BluJay Solutions Ltd., Zuken Inc., Silvaco Inc., Aldec Inc., Agnisys Inc., Labcenter Electronics Ltd., Intercept Technology Inc., Sigasi NV, Altair Engineering Inc., Boldport Limited, Dolphin Design, EasyEDA, EnSilica plc, Eremex Ltd.

What Trends Are Expected to Dominate the Electronic Design Automation (EDA) Market in the Next 5 Years?
Major players in the electronic design automation (EDA) market, such as Siemens AG, are introducing groundbreaking products like Tessent RTL Pro to outpace their competitors. This software tool aids integrated circuit (IC) design teams in speeding up and simplifying numerous crucial design-for-test (DFT) tasks for upcoming designs. For example, Siemens AG, a German-based automation firm specializing in designing, developing, and producing products, unveiled the advanced Tessent RTL Pro software solution in October 2023. This cutting-edge software enables the automation of test points, wrapper cells, and x-bounding logic analysis and insertion early in the design process, helping engineers spot and rectify testability issues right from the initial design stages. Tessent RTL Pro is compatible with Siemens' Tessent DFT tools, offering pioneering features that help customers reduce design turnaround time and enhance market introduction speed.

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Which Is The Largest Region In The Electronic Design Automation (EDA) Market?
North America was the largest region in the electronic design automation (EDA) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the electronic design automation (EDA) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Electronic Design Automation (EDA) Market?
2. What is the CAGR expected in the Electronic Design Automation (EDA) Market?
3. What Are the Key Innovations Transforming the Electronic Design Automation (EDA) Industry?
4. Which Region Is Leading the Electronic Design Automation (EDA) Market?

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